If a firm misses a payment for a non-cumulative preferred stock, the dividend never has to be paid.

Name: If a firm misses a payment for a non-cumulative preferred stock, the dividend never has to be paid.
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

If a firm misses a payment for a non-cumulative preferred stock, the dividend never has to be paid.​

Quizplus · Accepted Answer

This statement is true. Non-cumulative preferred stock is a type of preferred stock where missed dividend payments are not accrued or cumulated. If a firm misses a payment, the dividend obligation is cancelled and the dividends do not have to be paid to shareholders in the future.

If a Firm Misses a Payment for a Non-Cumulative Preferred